Leonardo SpAFINMF -2.17%84 Return-on-Tangible-Equity is 12.00% as of Mar. 2026, which is 97% below its 10-year median of 432.19. GuruFocus rates FINMF with a GF Score™ of 84/100 and a GF Value™ of $35.87 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 334 Aerospace & Defense companies, Leonardo SpA ranks better than 67.66% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Leonardo SpA's annualized net income for the quarter that ended in Mar. 2026 was $749 Mil. Leonardo SpA's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6,242 Mil. Therefore, Leonardo SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.00%.
The historical rank and industry rank for Leonardo SpA's Return-on-Tangible-Equity or its related term are showing as below:
FINMF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.51 Med: 432.19 Max: 16450
Current: 17.51
During the past 13 years, Leonardo SpA's highest Return-on-Tangible-Equity was 16,450.00%. The lowest was 17.51%. And the median was 432.19%.
FINMF's Return-on-Tangible-Equity is ranked better than 67.66% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs FINMF: 17.51
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Leonardo SpA Return-on-Tangible-Equity Related Terms
Leonardo SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Leonardo SpA's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FINMF vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Leonardo SpA's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Leonardo SpA Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Leonardo SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Leonardo SpA's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.00% mean?
Leonardo SpA (FINMF) has a Return-on-Tangible-Equity of 12.00% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Leonardo SpA and its competitors. This is 97% below median its historical median of 432.19. Over the past decade, Leonardo SpA's Return-on-Tangible-Equity has ranged from 17.51 to 16,450.00. According to the industry distribution chart, Leonardo SpA ranks #108 out of 334 companies in the Aerospace & Defense industry, placing it in the top 32.3%.
Is Leonardo SpA's Return-on-Tangible-Equity too high?
Leonardo SpA's current Return-on-Tangible-Equity of 12.00% is 97% below median its 10-year median of 432.19. Over the past 10 years, this metric has ranged from a low of 17.51 to a high of 16,450.00. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Leonardo SpA's value of 12.00% is 46.4% above this industry median. Based on the distribution chart, Leonardo SpA ranks #108 out of 334 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Leonardo SpA has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leonardo SpA's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Leonardo SpA ranks #108 out of 334 companies for Return-on-Tangible-Equity. This puts Leonardo SpA in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Leonardo SpA's value of 12.00% is 46.4% above this benchmark. Historically, Leonardo SpA's own Return-on-Tangible-Equity has ranged from 17.51 to 16,450.00 over the past decade. While the company's 10-year median is 432.19 vs. the industry median of 8.20, Leonardo SpA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Leonardo SpA's current Return-on-Tangible-Equity of 12.00% is 46.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Leonardo SpA and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leonardo SpA's current Return-on-Tangible-Equity is 12.00%, which is 97% below median its own 10-year median of 432.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leonardo SpA stock overvalued right now?
Based on GuruFocus' analysis, Leonardo SpA (FINMF) is currently considered Significantly Overvalued. The stock's GF Value™ is $35.87, compared to a current price of $52.66 — trading 46.8% above its estimated fair value. The current Return-on-Tangible-Equity is 12.00%, which is 97% below median its 10-year median of 432.19 and 46.4% above the Aerospace & Defense industry median of 8.20. Leonardo SpA's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Leonardo SpA (FINMF), the current Return-on-Tangible-Equity is 12.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Leonardo SpA (FINMF) Overvalued in 2026?
Based on GuruFocus' analysis, Leonardo SpA stock appears to be overvalued.
The current stock price of $52.66 is trading 46.8% above its estimated GF Value™ of $35.87.
GuruFocus considers Leonardo SpA to be Significantly Overvalued.
Key valuation signals for FINMF:
Return-on-Tangible-Equity: 12.00% (97% below median its 10-year median of 432.19)
GF Value™: $35.87 vs. price of $52.66 (46.8% above fair value)
Industry Position: 46.4% above the Aerospace & Defense median (#108 of 334)
No single metric tells the full story. See the FINMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leonardo is a leading European security firm, with 30.2% of shares owned by the Italian government. Divisions include helicopters, defence electronics & security, aeronautics, cyber & security solutions, and space.The helicopter division serves both military and civil markets. Defence electronics & security accesses the US market through the Leonardo DRS subsidiary. Aeronautics integrates aircraft and aerostructures, participating in major programs like Eurofighter, F-35, and the Global Combat Air Programme, or GCAP. It also supplies large structural components to major commercial aircraft programs. Leonardo is currently evolving from a defense firm into a data-driven global security company.
84GF Score
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